How many Aerus outlets in Tennessee had non-renewals in 2024?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non-Rene wals | Required by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| Tennessee | 2022 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| 2023 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| 2024 | 4 | 0 | 0 | 2 | 0 | 0 | 2 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 61–73)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, two Aerus outlets in Tennessee had non-renewals in 2024. The table provided in Item 20 of the FDD outlines the number of outlets that experienced non-renewals during the 2024 fiscal year. At the start of 2024, there were four Aerus outlets in Tennessee. During 2024, two outlets were not renewed, and the number of outlets at the end of the year was two.
Non-renewal of a franchise agreement means that the franchisee's right to operate under the Aerus brand was not extended when the original term of the agreement expired. This can occur for a variety of reasons, such as the franchisee's failure to meet performance standards, a decision by either party not to continue the relationship, or changes in the franchisor's business strategy.
Prospective franchisees should consider the non-renewal rate as an indicator of franchise sustainability and the overall health of the franchise system. A high number of non-renewals could signal potential issues with franchisee profitability, support, or brand reputation. It is important to note that non-renewals are not necessarily negative, as they can also result from franchisees retiring or choosing to pursue other opportunities. However, it is a data point worth investigating further during the due diligence process.
It would be prudent for potential Aerus franchisees to discuss the reasons behind these non-renewals with the franchisor to gain a better understanding of the factors that may have contributed to these decisions. Understanding the context behind non-renewals can help a prospective franchisee assess the risks and opportunities associated with investing in an Aerus franchise.